Bond Report: 10-year yield advances for fourth straight week after U.S. July producer price data

by | Aug 11, 2023 | Stock Market

Treasury yields finished at one-week highs on Friday after the U.S. July producer price index came in hotter than expected, handing the benchmark 10-year rate its fourth consecutive weekly advance.

What happened
The yield on the 2-year Treasury
climbed 7.2 basis points to 4.893% from 4.821% on Thursday. For the week, the 2-year yield was up 10.2 basis points.

The yield on the 10-year Treasury
rose 8.5 basis points to 4.166% from 4.081% Thursday afternoon. The 10-year rate rose 10.6 basis points this week, its fourth straight week of advances and the longest such streak since the period that ended on March 3.

The yield on the 30-year Treasury
was up 4 basis points at 4.271% after factoring in new-issue levels. For the week, the 30-year rate rose 5.7 basis points. It’s gained 36.5 basis points over the past three weeks, its largest three-week gain since the period that ended on Dec. 30. 

Friday’s levels for the 2-, 10- and 30-year rates were all the highest since Aug. 3, based on 3 p.m. figures from Dow Jones Market Data.

What drove markets Data released on Friday showed that the producer price index rose 0.3% in July, more than the 0.2% advance expected by economists polled by The Wall Street Journal. July’s increase is the largest gain since January and up from a revised flat reading in June. Meanwhile, the University of Michigan’s gauge of consumer sentiment was essentially unchanged in August from July, and consumers saw substantial improvements in the e …

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